Dollar Retraces Last Week’s Rebound on Easing Expectations
The case for an emergency-style half percentage-point rate cut at the Federal Reserve’s September meeting took a series of blows last week, helping boost Treasury yields and halt the dollar’s long slump. Inflation slowed in July, but exhibited no evidence of collapsing consumer demand. Initial applications for unemployment benefits fell for a second consecutive week, suggesting that labour markets were not suffering the violent reversal feared only a few weeks earlier. And recession worries eased as headline retail sales accelerated by the most since last January. Jerome Powell is widely expected to telegraph a September rate cut in Friday’s appearance...